Fed's George wants rate hikes soon, and not too gradual

Kansas City Federal Reserve Bank President Esther George said Thursday she is open to leaving the U.S. central bank's balance sheet big even as it withdraws accommodation, a comment that reveals the extent of uncertainty at the Fed over future policy. The Fed's balance sheet now tops $4 trillion after years of buying bonds to boost the economy, a policy that George has opposed for years. At Stanford University's Hoover Institution conference on central banking, she reiterated her view that the Fed should start to raise rates "shortly after" it ends its current round of bond-buying, and that rate rises should be steeper than many now expect. Then she was asked how she feels about keeping the Fed's balance sheet big once rates start to rise.

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